Ireland's energy regulator, the Commission for Regulation of Utilities, said in a release dated December 12, 2025 that it had published its decision on "a new electricity connection policy for data centres." The announcement, the release says, comes "after an extensive period of consultation" on a proposed decision published in February. Parts of the release follow, not the whole. The decision paper itself is not reported here.
Demand, and a Pathway to Connect
Data centers' electricity demand in Ireland grew "from 5% of national electricity demand in 2015 to 22% in 2024," it says. Looking ahead, the release reports that EirGrid, with currently contracted demand, has forecast data center demand "projected to increase from 9.4 TWh in 2025 to 14.6 TWh in 2034." On that forecast, the release says, the increase "will result in" data centers' share of national electricity demand rising to 31% by 2034.
The new policy, in the regulator's words, aims "to provide a pathway for data centres to connect to the electricity system." That pathway, the release says, takes into account the existing constraints on the grid and the pace at which network capacity is delivered, security of supply and generation adequacy, and the national renewable energy targets.
The Generation Requirement
New data centers connecting to the electricity network, the release says, "will continue to be required to provide generation and/or storage capacity, either onsite or local in proximity to match the requested data centre maximum import demand capacity." That generation "will be required to participate in the wholesale electricity market to support overall system adequacy, while providing a potential revenue stream to the developer."
A renewable requirement sits beside it. Data centers "will be required to meet at least 80% of their annual demand with additional renewable electricity projects generating in the Republic of Ireland." Renewable generation already contracted through existing support schemes cannot count toward it. Developers "will be allowed a 6-year glide path for renewables to be developed and start generating," and "will be required to present a credible plan" for those projects to the system operators, EirGrid and ESB Networks.
Location and the Connection Process
The system operators "must consider whether a requested data centre connection is in a constrained or unconstrained location on the electricity network," which means a focus on "the details of the specific application and its location on the electricity network instead of the current broader regional approach." They will also be required to publish, regularly, information on "the availability of capacity on the electricity network, identifying current and future constraints."
The system operators "will be required to publish an engagement and connection process for data centre connection applicants by 31 March 2026." The regulator is also of the view that the sector's medium to long-term development in Ireland "requires a State-led approach," covering spatial planning, development targets and plan-led infrastructure development.
What will the system operators' connection process ask of an applicant?
Sources
- Commission for Regulation of Utilities (Ireland). The CRU Publishes its Decision on New Electricity Connection Policy for Data Centres. 12 December 2025. regulator